What we do

We guide you through your international development.

We advise the optimized strategy that will enable your organization to grow beyond its home market.

Tax optimization

Companies willing to settle in France will have to comply with French tax system. Among all, here are some major taxes a company has to comply in France:

 

French corporation tax: (Impôt sur les sociétés – IS)

This tax is due on all profits generated in France by companies. The standard rate is 33.33% on companies’ profits. Reduced rates can be applied if certain conditions are filled. For ex, SME under 7.63M EUR (excluding VAT) can benefit from a reduced tax rate of 15% on the first 38 120 EUR profits if share capital is fully paid up and if at least 75% of this share capital is continuously held by physical persons or by a company meeting the same conditions.

In France, profits made within France are liable to French corporation tax, regardless the nationality of the company. However, profits made by a French company in enterprises outside of France are not liable to French corporation tax; and foreign companies are liable to French corporation tax only on profits made by their companies operating in France.

 

VAT (Taxe sur la Valeur Ajoutée – TVA)

The standard VAT rate is 19.6% but there is a reduced rate of 5.5% or 7% that applies to certain goods and services such as food and agricultural products and cultural products (ex: books). A special rate of 2.1% applies to press publication and medical drugs reimbursed by French social security.

 

Personal Income Tax (Impôt sur le Revenu – IR)

A taxpayer is tax resident in France if any of the following criteria is satisfied:

  • 183 days or more is spent each year in France
  • Principal business activity in France, salary or not
  • Main residence in France
  • “Centre of economic interests” in France, meaning principal investments in France, business management from France or majority of income sourced in France

If the taxpayer resides also in another country, the tax residence is decided in reference to the relevant Double Tax Treaty, if any.

French tax resident is liable to:

  • French income tax on their worldwide income and capital gains (can be otherwise if the taxpayer is also taxed in another country and if there is a double tax treaty).
  • French Wealth Tax on worldwide net assets.
  • French Inheritance and Gift Tax on assets bequeathed on death or gift during lifetime (can be otherwise if the taxpayer is also taxed in another country and if there is a double tax treaty).
Portion of taxable income (one part) Tax Rate %
Up to 5,963 0
5,964 to 11,896 5.5
11,897 to 26,420 14
26,421 to 70,830 30
Over 70,831 41

The income are to be declared each year in France, instead of each month in some countries.